An article from Pacific Business News says that a $1M donation to UH will endow two permanent professorships.
Yet drawing 5%, the IRS charitable foundation guidelines, from $1M is only $50K/year. It's hard to believe that it'll support one professor's salary, let alone two. The article claims that UH's Manoa College of Business is ranked among the nation's top 20 graduate schools for international business by U.S. News World Report, so presumably this isn't a diploma mill scam.
Am I missing something about endowments, or are professors paid a lot less than I think?
Yet drawing 5%, the IRS charitable foundation guidelines, from $1M is only $50K/year. It's hard to believe that it'll support one professor's salary, let alone two. The article claims that UH's Manoa College of Business is ranked among the nation's top 20 graduate schools for international business by U.S. News World Report, so presumably this isn't a diploma mill scam.
Am I missing something about endowments, or are professors paid a lot less than I think?